IA may spin off cargo operations

Nagpur planned as cargo hub

A separate company may be set up in the future to handle Indian Airlines' proposed cargo business. This is part of the carrier's strategy, which plans to make Nagpur the hub of its cargo operations.

"We see the cargo segment growing. We are of the view that a separate company in the future will be the best option. But, it will depend on how the operations grow," a civil aviation ministry official told Business Standard.

Indian Airlines, which gets about Rs 300 crore from cargo operations, initially will convert five aircraft belonging to Alliance Air into freighters.

The Indian Airlines Board today gave an in-principle approval for converting five B737 aircraft, currently being operated by Alliance Air, into freighters, for the launch of dedicated freight operations.

These aircraft will be converted once Alliance Air inducts A319 aircraft on lease during the winter schedule of 2005.

According to Indian Airlines, the Rs 2,500 crore air express cargo market is seeing a growth of 20 per cent year-on-year and this is the right time for the carrier to get into this new line of business.

Indian Airlines plans a major expansion in this market over the next few years. It is estimated that growth in air cargo traffic will outpace that of passenger boardings over the next 20 years.

As per plans, these five aircraft will be operated on the hub-and-spoke pattern with timings that will suit the express cargo market needs.

The service is being launched from the six major metros "" Delhi, Mumbai, Kolkata, Chennai, Bangalore and Hyderabad with Nagpur as the hub.

According to sources, the dedicated freight operations will enable IA to service the courier market even at the retail end.

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Giving freight a leg up

Indian Airlines, which gets about Rs 300 crore from cargo operations, initially will convert five aircraft belonging to Alliance Air into freighters

These aircraft will be converted once Alliance Air inducts A319 aircraft on lease, during the winter schedule of 2005

Indian Airlines feels the Rs 2,500 crore air express cargo market is seeing a growth of 20 per cent year-on-year

The five aircraft belonging to Alliance Air are planned to be operated on the hub-and-spoke pattern with timings that will suit the needs of the express cargo market